Tata Group Becomes Fourth iPhone Assembler for Apple, Signaling Accelerating Production Relocation

According to a report by TrendForce, India’s Tata Group is set to become the fourth assembler for Apple’s iPhones. Following Apple’s established pattern, new suppliers initially receive smaller orders for lower-end models. Therefore, Tata Group will initially handle modest orders for the upcoming iPhone 15 and iPhone 15 Plus.

The inclusion of Tata Group as an iPhone assembler carries significant implications for Apple’s production and distribution strategy, as highlighted by TrendForce. Firstly, Tata Group’s involvement signifies that India will be at the forefront of the new iPhone series’ global shipments. This development further solidifies India’s growing importance as a key manufacturing hub for Apple.

Secondly, Tata Group’s ability to produce iPhones is attributed to its acquisition of Wistron’s Indian production line. As Tata enters the assembly business, Wistron is expected to exit the iPhone assembly market. This transition marks a shift in the manufacturing landscape as Apple continues to realign its production partners.

Lastly, Tata Group now joins the ranks of Luxshare as the fourth company entrusted with iPhone assembly, with Luxshare having joined in 2020 specifically for the assembly of the iPhone 12 Pro Max. This expansion of Apple’s supply chain demonstrates the company’s commitment to diversifying its production base and reducing its reliance on a single assembler.

TrendForce’s report emphasizes that although Tata Group’s share of assembly orders for various iPhone models is currently at 5% in 2023, it underscores the accelerating trend of Apple’s production relocation. This strategic move by Apple aims to mitigate risks and streamline its supply chain by distributing assembly responsibilities among multiple partners.

As Tata Group prepares to undertake iPhone assembly, industry observers will closely monitor the development and its potential implications on India’s smartphone manufacturing ecosystem, as well as Apple’s global production strategy.

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